Avexa (AVX)

Shares in drug developer
Avexa
were caught in the broad market selloff on Wednesday. That was despite news it had secured a meeting with the US Food and Drug Administration on a possible way forward for its anti-HIV drug apricitabine. The stock has fallen more than 4 per cent, or 2¢, to 4.6¢, but it is still well above where it was in early May. Back then it dived 75 per cent to 3¢ on news
Avexa
would abandon development of its drug, on which it spent five years and more than $100 million. The meeting could return some commercial value to apricitabine. Management has tried to find a new growth path for Avexa by buying a 24 per cent stake in emerging biotech Allied Medical for $1.5 million and has also licenced its antibacterial drug program to Swiss-based Valevia, which could yield revenues of $US65 million. Avexa had $22.5 million in cash at September 30 and the market puts its potential revenue streams at $16 million.